Suppose the productivity of labor increases and at the same time the price of capital, which is complementary to labor, increases. As a result, the demand for labor:
A. will increase.
B. will decrease.
C. may either increase or decrease.
D. will not change.
Answer: C
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According to the theory based on rational expectations and flexible wages and prices,
A) only the combination of discretionary fiscal policy and conservative monetary policy can affect real GDP in the long run. B) neither fiscal nor monetary policy influence real GDP in the long run. C) fiscal policy has less effect on real GDP than monetary policy in the long run. D) monetary policy has less effect on real GDP than fiscal policy in the long run.
________ is a tendency to search for information that reaffirms individuals' own beliefs, thus entrenching them further in their own prejudices
A) Attenuation bias B) Confirmation bias C) Attentional bias D) Negativity bias
Antitrust activity is not a good example of using the "power of the purse" to control administrative activities in support of political ideology
Indicate whether the statement is true or false
Currently, total government expenditures in the United States is approximately:
a. 50 percent of GDP. b. 75 percent of GDP. c. 40 percent of GDP. d. 80 of GDP.